The problem here may lie not with the gold bugs but with those who work so hard to isolate them.

13 comments on “The problem here may lie not with the gold bugs but with those who work so hard to isolate them.
  1. F. Beard says:

    In a gold-standard regime, money is backed by gold, so it’s impossible, or at least more difficult, for governments to inflate. from http://www.bloomberg.com/news/2012-05-02/gold-standard-for-all-from-nuts-to-paul-krugman.html

    So if the government wish to bailout the entire population ala Steve Keen IT COULD NOT.

  2. Michael says:

    @F. Beard
    I don’t think that Steve Keen expects his policies to be enacted, or even describes them as if they would be enacted, in a world with a strict gold standard. Not that they’ll be enacted anyway, but what the hell.

  3. I_Cant_Believe_Its_Just_a_Dip says:

    You can still have inflation, gold just needs repegging every now and then to local fiats effectively devalueing the currency-lets say every 3 or 4 yrs for sake of argument(for all countries at same time) thus allowing the appearance of growth.
    http://www.youtube.com/watch?v=qHYOXyy1ToI&feature=related

  4. F. Beard says:

    @Michael,

    The purpose of a gold standard is to PREVENT the redress of injustice by government.

  5. Bruce says:

    From the Keiser Report time machine:
    Keiser Report: Dollar-Trapped! (E186) – YouTube

  6. niphtrique says:

    Well, there is a problem with gold. We can start all over again and make the same mistake. Apart from all the gold being in the hands of a few people, it will be a replay of history.

    In the late Middle Ages, from the thirteenth century onward, the money supply was greatly increased by goldsmiths who created money by lending out money they did not have in deposit. They invented fractional reserve banking which greatly stimulated trade. This gave an additional boost to the European economy.

    The European economy started to run in a higher gear. This became the main driving force for the exploration and exploitation of the rest of the world by Europe in the centuries that followed. The expansionist drive also satisfied the interest payments on the increasing debt load, and in this way the usury financial system gradually took hold of Europe.

    Over the years the influence of banks gradually increased. Bankers have influenced wars, revolutions and political developments by financing parties in conflicts. Central banks emerged, partly because the system of usury is inherently instable, and partly because of political activities of bankers. Central banks were introduced to regulate the banking business and to prevent bank runs, but they also generated a profit for the private interests behind the central banks.

  7. Michael says:

    @F. Beard
    There’s no purpose to a gold standard, but it IS more able to preserve the value of each unit of currency by not being able to inflate it to zero. There’s a reason why all governments resort to fiat systems & that’s to keep those in power, in power & to extract from those outside of it. As a poor person, I can tell you that a £ that kept it’s value would be bloody useful to me. There’s no point me saving something that will never be worth more than during the second it hits my pocket.

  8. F. Beard says:

    @Michael,

    One can steal by deflation as well as by inflation.

    The proper solution is not making government money difficult to produce but limiting its legal tender status to government debts only per Matthew 22:16-22.

  9. F. Beard says:

    There’s a reason why all governments resort to fiat systems Michael

    A little thought reveals that inexpensive fiat is the ONLY ethical money form for government debts.

  10. F. Beard says:

    @niphtrique,

    Well said! A return to a gold standard is an exercise in vanity since it will eventually be rejected again assuming we survive it.

  11. F. Beard says:

    “The problem here may lie not with the gold bugs but with those who work so hard to isolate them.”

    Oh yeah!

    Those in favor of a fascist, primitive, failed, environmentally destructive gold standard are not the problem; their critics are!

  12. Hegelian Dialectic says:

    ” From Nuts to Paul Krugman ” – Now there’s a short commute!

  13. Bruce says:

    Hegelian Dialectic | May 4, 2012 at 3:46 pm |
    ” From Nuts to Paul Krugman ” – Now there’s a short commute!
    ~~~~~~~~~~~~
    LOL.

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